Hut 8 Secures $200 Million Bitcoin-Backed Credit Agreement, Replacing Original Coinbase Credit Financing Arrangement

Odaily Odaily reports that Hut 8 has announced its subsidiary has entered into a $200 million, 364-day bitcoin-backed credit agreement with FalconX to replace its previous financing arrangement with Coinbase Credit. The new financing carries a fixed annual interest rate of 7.0%, representing a 200 basis point reduction from the previous Coinbase financing rate of 9.0%. Between December 2023 and March 2025, the financing cost had been as high as 10.5%–11.5%, with cumulative reductions reaching up to 450 basis points, demonstrating ongoing progress in optimizing debt costs.

Following this refinancing, approximately 3,300 BTC held by Hut 8 will become unencumbered, valued at around $260 million based on market capitalization as of May 1, 2026, significantly enhancing the flexibility of its balance sheet and liquidity headroom. Additionally, the credit structure maintains key risk control provisions, including a limited recourse structure, no-rehypothecation clauses, and a fixed LTV threshold design to prevent additional margin calls triggered by a decline in bitcoin's price.

Hut 8 management stated that this financing not only reduces funding costs but also releases more unencumbered bitcoin assets, helping to enhance capital allocation flexibility across different market cycles. FalconX, for its part, emphasized that this transaction reflects its continued expansion capabilities in institutional-grade bitcoin credit solutions. (PRNewswire)